Director disqualification and DIN deactivation: the Rules do not permit automatic deactivation merely because a director is disqualified.

The settled position under Section 164(2) and Section 167(1) of the Companies Act, 2013, read with Rules 9, 10, 11 and 14 of the Companies (Appointment and Qualifications of Directors) Rules, 2014, is that a director's disqualification does not by itself authorise the Registrar of Companies to deactivate the DIN. The statutory scheme was read as preserving the DIN for use in regularising filings for the defaulting company, so automatic deactivation is inconsistent with the Rules. On that basis, the challenge to the disqualification-related order and the consequential request for reappointment was dealt with in line with the earlier Division Bench ruling.

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Issues: Whether the order disqualifying the petitioner as director and the consequential request for reappointment could be interfered with in view of the settled position on disqualification of directors and deactivation of DIN under the Companies Act, 2013 and the relevant Rules.

Analysis: The challenge was considered in the light of the Division Bench decision which had examined the scope of Section 164(2) and Section 167(1) of the Companies Act, 2013 together with Rules 9, 10, 11 and 14 of the Companies (Appointment and Qualifications of Directors) Rules, 2014. That decision had held that the Rules did not empower the Registrar of Companies to deactivate the DIN merely because a director stood disqualified, and that such deactivation was inconsistent with the statutory scheme since the director may still need the DIN to regularise filings for the defaulting company.

Conclusion: The writ petition was allowed and the petitioner obtained relief in terms of the earlier Division Bench ruling.

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